1954 (3) TMI 40

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.... to Marseilles, outside the Indian Union, after 26th January, 1950. The purchases were, however, made before that date. The Tribunal upheld the claim of the assessee on the ground, that the amount is exempt from tax under Article 286(1) of the Constitution. The correctness of this is canvassed by the learned Government Pleader in this revision petition. In the case of hides and skins which are not tanned Section 5(vi) of the General Sales Tax Act provides: "Subject to such restrictions and conditions as may be prescribed, including conditions as to licences and licence fees.......... (vi) the sale of hides and skins, whether tanned or untanned, shall be liable to tax under Section 3, sub-section (1), only at such single point in the series ....

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....as provided in sub-rule (2) the gross turnover of a dealer for the purposes of these rules shall be the amount for which goods are sold by the dealer. (2) In the case of the undermentioned goods the gross turnover of a dealer for the purposes of these rules shall be the amount for which the goods are bought by the dealer. (d) untanned hides and skins exported outside the State by a licensed dealer in hides or skins." Reading these relevant provisions bearing upon the question it would be seen that in the case of transactions in untanned hides and skins by a licensed dealer in hides or skins, there are only two taxable events at which the tax could be levied. The general rule enunciated in rule 16(2) is that no tax shall be levied on the ....

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....r export outside the State, but the purchase by the licensed dealer with a view to sell them for export outside the State; as the decision in State of Travancore-Cochin v. S.V.C. Factory(1) held that such a purchase was not exempt under Article 286, the assessee could not claim the exemption. If the correct interpretation of the rules is, as contended by the Government Pleader, that the stage which, or the transaction which, attracts the tax is not the sale by the licensed dealer for export outside the State, but the purchase by him with a view to sell (1) [1953] 4 S.T.C. 205.   it for export outside the State, the stand taken by the Government Pleader will be tenable. But, in our opinion, the language of the rule does not admit of ....